Movement along PPC from resource reallocation

Steps:

• PPC shows maximum combinations of goods X and Y with fixed resources and technology.
• Points M and N on the curve indicate efficient production levels.
• Moving from M to N along the curve means producing more X and less Y.
• This occurs when resources are shifted from Y to X production.

Why D is correct:

• Movement along the PPC represents increased resource allocation to one good, reflecting the law of increasing opportunity cost as more of X requires sacrificing more Y.

Why the others are wrong:

• A: Decreased unemployment in Y would move from inside to on the curve, not along it.
• B: Technology improvement for X shifts the entire PPC outward.
• C: Higher worker productivity for X also shifts the PPC outward.

Final answer: D